In 2019 the Ministry of Foreign Affairs of Denmark (MFA) provided a capital contribution of DKK 200 million to the Investment Fund for Developing Countries (IFU) for the development and implementation of a High Risk – High Impact initiative focusing on investments with high development impact in the least developed countries and fragile states in Africa. The background for this initiative was the recognition, that IFU need to be better aligned with the development priorities of the MFA and hereby strengthen its investment focus in the least developed countries, and particularly in Africa. The initiative was launched in 2020.

The new initiative was prepared within a clearly defined strategic framework including issues concerning country focus/GNI per capita threshold, investment targets in the concerned region (Africa), focus on development results, thematic focus, concessionally approach, risk/return balance, governance, and results measurement and reporting. It was emphasised, that the first two to three years of the implementation should be considered as a test period in order to gain experience and, if necessary, to adapt approaches and procedures.

Nordic Consulting Group Denmark and its partner Marie-Louise Appelquist will be part of the team assessing the progress and performance against the planned objectives and targets, strategic considerations, the investment procedures, and the approved investment projects. The review will further assess the planned and actual governance procedures, the M&E system and procedures, and the steps taken to develop and document learning about this new initiative.